5.
Model of Specialization Suppose She and He are single and each spends half of the time in market work and in housework. Value created: $15 each She He Market $5 $10 H Prod $10 $5 She alone He alone Household production Market 20 10 10 20

6.
Model of Specialization Suppose She and He are married. She spends full time in housework. He spends full time in market work. Value created: $20 each She He Market $0 $20 H Prod $20 $0 She specializes full time He specializes full time Household production Market 20 10 10 20

7.
Model of Specialization She specializes full time He specializes full time Comparative Advantage : ability to produce relatively cheaper than your trading partner He has CA in Market work, She in HProd For each $1 of Market earnings She sacrifices 20/10 = $2 of HProd He sacrifices 10/20 = $0.5 of HProd He has lower opportunity cost of Market work She has higher opportunity cost of Market work

Specialization does NOT have to be complete for there to be gains

Larger gains to specialization if men and women have very different skills